Decision on the Collection, Processing and Submission of Data on the Balance and Structure of Accounts in the Chart of Accounts

RS Official Gazette, Nos 101/2017 and 13/2019 Pursuant to Article 18, paragraph 1, item 3 and Article 68, paragraph 2 of the Law on the National Bank of Serbia (RS Official Gazette, Nos 72/2003, 55/2004, 85/2005 – other law, 44/2010, 76/2012, 106/2012, 14/2015 and 40/2015 – CC decision), the Governor of the National Bank of Serbia adopts the following DECISION ON THE COLLECTION, PROCESSING AND SUBMISSION OF DATA ON THE BALANCE AND STRUCTURE OF ACCOUNTS IN THE CHART OF ACCOUNTS

1. This Decision lays down the obligation of banks, the Deposit Insurance Agency and Development Fund of the Republic of Serbia to submit to the National Bank of Serbia data on the balance and structure of accounts prescribed by the Chart of Accounts for Banks, and the manner of their collection, processing and submission. The obligation from paragraph 1 hereof relates also to the accounts of the National Bank of Serbia prescribed by the Chart of Accounts for the National Bank of Serbia.
2. The reporting entities referred to in Section 1 hereof (hereinafter: reporting entities) shall report the data from that Section on the prescribed form – Balance and Structure of Accounts (hereinafter: SSKR form), which consists of the Heading of Balance and Off-balance Sheet Items (Annex 1), Balance and Structure of Accounts (Annex 2) and Structure of Compulsory Codes (Annex 3). The SSKR form also includes subheadings of balance and off-balance sheet items, and the recapitulation and sum of balance sheet item classes. For the purpose of filling out the SSKR form, the National Bank of Serbia publishes on its website the sector classification, country codes and list of codes for international organisations, which are regularly updated.
3. The reporting entities shall submit the SSKR form to the National Bank of Serbia in electronic form, in accordance with the instructions regulating the electronic submission of data to the National Bank of Serbia.
4. The three-digit accounts prescribed by the decision on the Chart of Accounts and contents of accounts in the Chart of Accounts for Banks and decision on the Chart of Accounts and contents of accounts in the Chart of Accounts for the National Bank of Serbia may be broken down by reporting entities according to their needs. However, in preparing reports for the

2 National Bank of Serbia, for some accounts in the balance sheet they shall ensure the following: – that the fourth and fifth digits show data on sector structure; – that the sixth digit of hedged dinar loans, receivables and liabilities shows data on hedging, and of foreign currency loans, receivables and liabilities – data on currency structure; – that the seventh digit shows data on the agreed maturity of loans, receivables and liabilities; – that the eighth digit shows data on the remaining maturity of loans, receivables and liabilities; – that the ninth digit shows data on the maturity of loans, receivables and liabilities; – that the tenth digit shows data on the types of receivables arising from loans and securities, on the types of receivables and liabilities arising from interest, and on the types of subordinated liabilities; – that the eleventh and twelfth digits show data on the countries to which loans, receivables and liabilities relate; – that the thirteenth digit shows data on the types of received collateral; – that the fourteenth digit shows data on the variability of the interest rate for loans, receivables and liabilities; – that the fifteenth digit shows data on the bank’s relations to the persons to which the loans, receivables and liabilities relate; – that the sixteenth digit shows data on the method of measurement of financial instruments in accordance with IFRS 9; – that the seventeenth digit shows data on the purpose and impairment stages of financial instruments in accordance with IFRS 9; – that the eighteenth digit shows data by size of the legal persons to which the loans, receivables and liabilities relate; – that the nineteenth digit shows data on credit operations; – that the twentieth digit shows data on the branch structure for sectors 93 – Companies in bankruptcy and other legal persons in bankruptcy (non-profit organisations and associations) and 96 – Public enterprises in bankruptcy to which the loans, receivables and liabilities relate. 5. For allowances for impairment accounts within every account group, the reporting entities shall ensure the following: – that the fourth digit shows data on structure according to the names of the three-digit accounts to which the allowance relates; – that the fifth and sixth digits show data on the sector structure of the accounts to which the allowance relates; – that the seventh digit of the dinar loans and receivables to which the allowance relates shows data on hedging, and of the foreign currency

3 loans and receivables to which the adjustment relates – data on currency structure; – that the eighth digit shows data on the agreed maturity of the loans and receivables to which the allowance relates; – that the ninth digit shows data on the remaining maturity of the loans and receivables to which the allowance relates; – that the eleventh digit shows data on the types of receivables arising from loans and securities, and on the types of the interest receivables to which the allowance relates; – that the twelfth and thirteenth digits show data on the country related to the loans and receivables to which the allowance relates; – that the fourteenth digit shows data on the types of collateral received for the loans and receivables to which the allowance relates; – that the fifteenth digit shows data on the bank’s relations to the persons related to the loans and receivables to which the allowance relates; – that the sixteenth digit shows data on the method of measurement of financial instruments in accordance with IFRS 9 to which the allowance relates; – that the seventeenth digit shows data on the purpose and impairment stages of financial instruments in accordance with IFRS 9 to which the allowance relates; – that the eighteenth digit shows data by size of the legal persons related to the loans and receivables to which the allowance relates; – that the nineteenth digit shows data on the credit operations to which the allowance relates; – that the twentieth digit shows data on the branch structure for sectors 93 – Companies in bankruptcy and other legal persons in bankruptcy (non-profit organisations and associations) and 96 – Public enterprises in bankruptcy for the loans and receivables to which the allowance relates. 6. The reporting entities shall provide the structure of the following income and expense accounts: – interest expenses; – fee and commission expenses; – expenses for write-offs of unrecoverable claims; – expenses of indirect reversed write-offs of financial assets measured at amortised cost; – interest income; – fee and commission income; – income from recovered written-off receivables; – income from indirect reversed write-offs of financial assets measured at amortised cost. The reporting entities shall provide the structure of the income and

4 expense accounts referred to in paragraph 1 hereof as follows: – that the fourth and fifth digits show data on sector structure; – that the sixth digit shows data on hedging and/or currency structure of the loans, receivables and liabilities from which those expenses and income arose; – that the tenth digit shows data on the types of expenses and income arising from fees and commissions; – that the thirteenth, fourteenth and fifteenth digits show data on the three-digit accounts of loans, receivables and liabilities from which those expenses and income arose, except for the accounts fee and commission expenses and fee and commission income; – that the twenty-first digit shows data on the variability of the interest rate for the loans, receivables and liabilities based on which interest expenses and interest income were recorded. 7. For accounts in off-balance sheet records, the reporting entities shall ensure the following: – that the fourth and fifth digits show data on sector structure; – that the sixth digit shows data on hedging and/or data on currency structure; – that the seventh digit shows data on agreed maturity; – that the eighth digit shows data on remaining maturity; – that the tenth digit shows data on the structure of other off-balance sheet assets (account 933) and/or other off-balance sheet liabilities (account 983), and/or data on the type of loan (accounts 934, 935, 984 and 985); – that the eleventh and twelfth digits show data on the country to which the off-balance sheet item relates; – that the thirteenth digit shows data on the type of received collateral; – that the fifteenth digit shows data on the bank’s relations to the persons to which the off-balance sheet item relates; – that the sixteenth, seventeenth and eighteenth digits show the structure of the basic three-digit account to which the write-off relates; – that the twentieth digit shows data on the branch structure for sectors 93 – Companies in bankruptcy and other legal persons in bankruptcy (non-profit organisations and associations) and 96 – Public enterprises in bankruptcy (accounts 934, 935, 984 and 985). The structure of basic accounts shall be disclosed for accounts in off￾balance sheet records, and shall not be disclosed for their offsetting accounts.

5 8. For each three-digit account that has a balance in the SSKR form, whose structure is to be disclosed in accordance with Annex 2, banks shall disclose the structure of that balance using the prescribed codes from Annex 3. The balance of the three-digit account must equal the sum of balances obtained by expanding the structure of the three-digit account according by individual codes. 9. The reporting entities shall prepare the SSKR form as at the last day of the month, and shall include in it all carried business changes relating to the period for which that form is prepared. The data in the SSKR form shall be presented in thousands of dinars. 10. The reporting entities shall ensure the unique structure and length of a record, the unique length and position of fields and correct entry of fields in corresponding positions in a record, and the unique logical control of all records, in accordance with the decisions referred to in Section 4 hereof and the instructions referred to in Section 3 hereof. 11. The reporting entities shall submit the SSKR form with the data for the previous month by the 14th in the current month. After submitting the data, they will be unable to make entries for that month, except in case of submitting preliminary reports for December and January. For newly incorporated reporting entities and reporting entities that stopped operating, the obligation to submit the SSKR form shall begin and/or stop after the end of the month in which their gyro and/or current account was opened or closed. The deadline for the entry of data, control, processing and submission of the SSKR form may be extended by days of public holidays, of which the National Bank of Serbia shall notify the reporting entities. The deadline for the entry of data, control, processing and submission of the SSKR form may be extended in case of force majeure events, of which the reporting entities shall notify the National Bank of Serbia in a timely manner. The reporting entities shall correct any errors detected in the SSKR form, and submit such corrected form to the National Bank of Serbia on the day following the date of expiry of the submission deadline. 12. The reporting entities shall carry out the formal, calculation and fundamental verification of the submitted data. Formal verification of data within the meaning of this Section shall imply the verification of the formal validity of data entered in fields 1 to 21 in the SSKR form, and of data entered in columns 3, 4 and 5 in the

6 recapitulation of balance sheet item classes in Annex 2, in accordance with this Decision. Calculation verification of data within the meaning of this Section shall imply the verification of the calculation of the envisaged sums (for each class individually and together for all classes), differences (balances of every account) and balancing of assets and liabilities in the columns envisaged in the recapitulation of balance sheet item classes (columns 3, 4 and 5 of Annex 2). Fundamental verification of data within the meaning of this Section shall imply the verification of the application of the decisions referred to in Section 4 hereof. 13. The reporting entities shall check whether the balances in internal relations accounts are disclosed in equal or approximately equal amounts at the end of each month, and in the SSKR form for December with closing balances and the structure of accounts, the total balance in internal relations accounts must equal zero. 14. The reporting entities shall verify the completeness of the data entered in the SSKR form. 15. The reporting entities shall verify the regularity of disclosed business changes relating to operations for and on behalf of others, whereby they shall verify that the balance on off-balance sheet accounts used to record loans does not exceed the balance on balance sheet accounts used to record assets for operations for and on behalf of others. 16. The reporting entities shall submit the SSKR form with preliminary data for December, before business books are closed, by 14 January of the following year. The reporting entities shall submit the SSKR form for December with closing balances and the structure of accounts to the National Bank of Serbia within the following deadlines: – before the business books are closed, with disclosed balance and structure of expense and income accounts – by 28 February of the following year; – after the business books are closed, without disclosed balance and structure of expense and income accounts – by 1 March of the following year.

7 The reporting entities shall submit the SSKR form with preliminary data for January by 14 February of the current year, and with closing balances and structure of accounts – by 8 March of the current year. 17. The Annexes are attached to this Decision and are integral thereto. 18. By way of exception to Section 16, paragraph 3 hereof, the reporting entities shall not be required to submit to the National Bank of Serbia the SSKR form with preliminary data for January 2018. 19. On the date of entry into force of this Decision, the Decision on Collection, Processing and Submission of Data on the Balance and Structure of Accounts in the Chart of Accounts (RS Official Gazette, Nos 71/2014 and 135/2014) shall cease to be valid. 20. This Decision shall be published in the RS Official Gazette and come into force on 1 January 2018. D. No 8 Governor 6 November 2017 of the National Bank of Serbia Belgrade Dr Jorgovanka Tabaković